Old fans know that last year I rolled over 900U to over 20,000U in less than a month, and there are people asking for details every day in the backend. To be honest, this is not just based on luck—the essence of trading is never about 'guessing tops and bottoms' but about executing a 'high-probability framework.' Today, I will break down the three core rules and identify two pitfalls that cause 90% of people to fail, and once you understand, you'll realize: making money through rolling positions actually has a formula.
1. Practical rolling position iron rules: 3 'counterintuitive' yet highly effective operational frameworks.
In trading, the most feared thing is 'thinking one way and doing another.' These three rules are what I polished through countless failures; executing them correctly directly maximizes the probability of profit.
1. Only shoot in the 'Trend Powder Keg': Filtering out 80% of garbage markets based on volatility.
Before I open a position, I must check one number: whether the 24-hour volatility exceeds 15%. Any asset below this threshold goes onto the 'watch list.'
Why? Insufficient volatility indicates that the price is 'sleeping,' and the probability of sideways fluctuation exceeds 70%—at this time, rolling positions is like driving on an icy lake; it looks stable but can drop in at any moment (frequent stop losses). In contrast, assets that meet the volatility criteria often show signs of a 'flame' in the trend, entering means 'using the trend to stoke the fire,' which is both labor-saving and safe.
(Highlight: High volatility = high opportunity, but also = high risk; the subsequent risk control will cover this aspect.)
2. Use the 'Safety Formula' for leverage: 3x is the golden balance point between profit and resilience.
Many people ask, 'What is the appropriate leverage?' My answer is always: three times the initial capital.
For example, with a capital of 1000U, open a position of 3000U (3x leverage). This is not a random decision: leverage below 3x means profits come too slowly when the trend arrives, and the 'compound interest effect' of rolling positions doesn't materialize; leverage above 3x means that even a small fluctuation can wipe out the position, erasing previous gains. Last year's operation from 900U to over 20,000U was done entirely with leverage not exceeding 3x, achieved through this 'steady and methodical' approach.
3. Closing positions using the 'Offense-Defense Way': Lock in profits first, then let the trend deliver money.
The easiest mistake to make when making money is 'greedily holding on all the way,' resulting in a roller coaster. My solution is to take two steps:
When profits reach 15%, immediately close half of the position. This step is 'defensive,' first putting half the profit in your pocket to ensure that this trade 'cannot lose,' keeping you calm;
For the remaining half position, set a 5% trailing stop loss. For example, after closing half the position at 15% profit, raise the stop loss line from the cost price to 'current profit point - 5%'—using the profits already pocketed as a 'bet' to chase a bigger trend. If you win, it's a big gain; if you lose, there's no heartache.
2. Two major 'Pitfalls' of rolling positions: Avoid them, and the survival rate increases threefold.
I have taught nearly a hundred students and found that 80% of liquidations cannot escape these two pitfalls; see if you've fallen into them.
Pitfall One: Rushing into the 'Turbulent Quagmire'
When the price bounces around during consolidation and volatility doesn't meet expectations, some people can't resist 'buying the dip and selling the top.' What happens? Back and forth stop losses, capital feels like it's being sliced by a small knife, and in just a few days, only a fraction is left.
My antidote: Add a '4-hour EMA dual-line filter.' Only take action when the short-term EMA12 crosses above the long-term EMA26 (golden cross), confirming that the trend has really 'started to move.' This can filter out 80% of ineffective fluctuations and ensure that bullets only hit the 'bullseye.'
Pitfall Two: Treating leverage as an 'accelerator' is actually a 'death warrant.'
Some people believe that 'the higher the leverage, the faster the profits,' but data doesn't lie: I've found that accounts using 25x leverage have a survival time more than three times that of those using 50x leverage. High leverage seems to amplify profits, but it actually maximizes the risk of 'losing everything in one mistake'—the core of rolling positions is 'compound interest snowballing,' not 'going all in and betting on outcomes.' Remember: slow is fast; surviving gives you the chance to earn.
3. Practical breakdown: The 78% profit from that LPT wave, every step has its method.
Talking without practice is just showmanship. Let's take the LPT market on April 12 as an example and see how this logic plays out.
Opening signal: 24-hour volatility at 18% (meet criteria), 4-hour EMA12 golden crosses EMA26 (trend confirmation), decisively open a long position when the price breaks above 4.27 USD—only take action when both conditions are met.
Position management: Capital of 1100U, strictly open 3300U at 3x leverage, not one cent more, not one cent less.
Closing execution: When it rises to 4.91 USD (15% profit), first close half (1650U), pocketing 346U; for the remaining position, set a trailing stop loss, and close everything when it rises to 5.63 USD, earning another 397U.
In the end, I pocketed 743U, a single return of 78%. The key is not how much you earn but that every step follows the rules without any 'gut feelings.'
To be honest: this method can indeed achieve a success rate of over 80% in unidirectional markets, but it is not a 'foolproof secret'—it is a 'tool to increase winning odds.' In the end, trading is not about how skilled your technique is; it's about whether you can control your actions and maintain discipline.
Want to know how to accurately determine critical points of volatility? Or what hidden signals are present in EMA golden crosses? Follow me, and tomorrow we will dive into the details. On the trading path, having someone guide you can minimize detours; if you find this useful, give me a thumbs up, and let's make profit the norm together.
